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The Oxford Club: Too Late to Invest in Cryptocurrencies?

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Oxford Club: Is Bitcoin Investing Too Late?

According to the latest publication from the Oxford Club’s educational arm, Investment U, Bitcoin has officially crossed the $16,000 mark and is very likely to head even higher.

So at this point it’s accurate to assume cryptocurrencies aren’t just a passing fad. Nevertheless, with one bitcoin setting you back nearly $17,000, many may be wondering if it’s too late to join the cryptocurrency bandwagon.

Adam Sharp, a co-founder Early Investing newsletter and an affiliate of the Oxford Club, says that bitcoin – and cryptocurrencies in general – haven’t even scratched the surface in terms of potential. Less than 1% of people around the globe own any cryptocurrency, and big institutional investors like hedge funds and banks are on the cusp of shifting money into this new asset class. So the surge in global adoption is really only just getting started, says Sharp.

The latest bitcoin statistics show that the so-called “reserve cryptocurrency” is now global, with over 75% of trading volume in Asian currencies, in particular Japanese yen and Korean won. Bitcoin has also gained significant popularity in emerging markets such as Estonia and South Africa, and in distressed economies such as Venezuela.

All of this is great news for individuals who already hold bitcoin. But what about the rest who don’t understand cryptocurrencies, let alone own bitcoin? For them the question is, will these currencies continue to gain popularity and surge, or is it too late?

It’s important to understand the reasons behind the surging popularity of cryptocurrencies like bitcoin. Among these is the fact that they are not issued or controlled by governments or central banks. This makes them immune to the whims and innovations of these institutions, which since the financial crisis have included mass asset purchases made with printed money, as well as negative interest rates. Mainstream economists have substantial concerns that these and other untested policies could have disastrous consequences for the dollar, the euro, the pound, the yen, and other “fiat” currencies, says Sharp.

Since these types of monetary and fiscal policies have been linked to the recent financial crisis and other economic problems, many investors have begun to embrace cryptocurrencies. In addition, this new asset class has offered better returns when compared to traditional safe haven assets such as gold.

Cryptocurrencies, however, have their own potential perils. For instance, because of the sudden surge of interest and the general lack of understanding about how they work, their prices tend to fluctuate more than those of other assets. The current bullish sentiment driving the price of citcoin up can reverse and fall just as fast as it has risen, which could bring losses to speculators. Just as with all assets, there are no assurances that the price of bitcoin will always increase.

So it’s more prudent to focus on the fact that there are other cryptocurrency investment opportunities beyond bitcoin. Investors looking to invest in cryptocurrencies should consider diversifying and putting their money into a basket of several of them. according to Sharp. In fact, the biggest cryptocurrency gains are most likely in the future and not necessarily in bitcoin.

Of course investors should not put the bulk of their savings into cryptocurrencies. They are by nature risky investments and so should be only a small part of anyone’s investment portfolio. Not owning them at all, however, is potentially a great missed opportunity.

Investing in other cryptocurrencies

The open-source nature of the first cryptocurrency (bitcoin) made it possible for many developers to use the bitcoin source code, make improvements and come up with other cryptocurrencies. Bitcoin was the world’s first cryptocurrency in 2009. Today there are over 1,300 cryptocurrencies – with more emerging every day.

And bitcoin no longer dominates the entire market. For years it enjoyed a market share of over 95%, but that has fallen to 50% of the global cryptocurrency market as other cryptocurrencies have come online. This surprising statistic is an indication that the focus has shifted from Bitcoin, says Sharp. If you feel it’s too late to invest in Bitcoin – something that is not yet clear to anyone – there are many viable alternatives. Sharp believes altcoins (alternative coins) have significant potential compared to bitcoin. It’s very possible that for newer, cheaper coins, the gains will be higher.

This is why Early Investing co-founders Adam Sharp and Andrew Gordon recently launched a new cryptocurrency research service called Crypto Asset Strategies. The goal of this new service is to offer the best possible cryptocurrency investing advice to subscribers.

In a recent podcast interview with Investment U, Oxford Club’s educational arm, Adam Sharp advised listeners to focus on altcoins and initial coin offerings.

Initial coin offerings, or ICOs, are relatively new. They resemble Initial Public Offerings (IPOs) for stocks but have greater potential for rapid price increases.

A major difference between ICOs and IPOs is in the research required. While IPO investors focus on metrics like revenue and earnings growth, ICO investors focus on the cryptocurrency idea. That is, how the new cryptocurrency or coin is different or better than other cryptocurrencies, how it can be used, and how likely it is to gain mass adoption. It’s also important to look at the experts (software engineers) and investors behind the cryptocurrency.

ICOs are relatively new and unfamiliar to most investors. Crypto Asset Strategies seeks to educate investors about these offerings and weed out the ones unlikely to catch on, while identifying those with the most potential. Sharp and Gordon hope to help novice cryptocurrency investors differentiate between good coins and currencies and bad ones.

The Oxford Club

The Oxford Club offers its members multiple resources to help grow and protect their wealth. With more than 157,000 members globally in 131 countries, it has been connecting trustworthy and knowledgeable investors and entrepreneurs since 1989. It helps members identify and share the most unique and profitable business opportunities globally today, and that includes cryptocurrencies.

You can visit www.oxfordclub.com to become a member of one of the world’s most notable global private investor networks. You can also access free Oxford Club publications by subscribing to educational and retirement investment arms of the club, including Investment U and Wealthy Retirement.

Check out the full article on Investment U: https://www.investmentu.com/article/detail/57097/is-it-too-late-buy-bitcoin

Don’t forget to connect with the Oxford Club on Twitter for up to date investment advice and the latest finance news!

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